Airbnb Sanctioned by Fair Trade Commission for Violation of Identity Information Disclosure Obligation

Recognition of the Obligation to 'Verify and Provide' Identity Information of Consignment Sales Intermediaries

[Image source=Yonhap News]

Overseas travel platform Airbnb has been sanctioned by the Korea Fair Trade Commission (KFTC) for violations such as failing to display information like the identity of the online mall operator.

On the 11th, the KFTC announced that it would impose a cease and desist order, a compliance order, and a fine of 500,000 KRW on Airbnb Ireland for violations of the "Act on Consumer Protection in Electronic Commerce" (hereinafter referred to as the Electronic Commerce Act).

According to the KFTC, Airbnb Ireland did not display the trade name, representative's name, address, phone number, email address, business registration number, or terms of use on its accommodation service brokerage online mall and mobile app Airbnb.

Furthermore, it failed to fulfill the obligation to verify and provide identity information to consumers before a contract is made by simply providing the identity information of the business operator, the communication sales brokerage client, such as trade name, representative's name, address, phone number, email address, communication sales business registration number, and business registration number, as written by the host without any verification.

The KFTC viewed these actions as violations of Article 10 Paragraph 1 and Article 20 Paragraph 2 of the Electronic Commerce Act, respectively, and decided to impose a cease and desist order, a compliance order, and a fine of 500,000 KRW.

The KFTC stated that through this measure, it recognizes that communication sales brokers operating brokerage platforms targeting domestic consumers, even if they are overseas businesses, have an obligation to thoroughly verify and convey the identity information of the communication sales brokerage client, and expects this to contribute to preventing consumer damage disputes.

The KFTC added, "We will continue to monitor violations of the Electronic Commerce Act by platform operators without discrimination between domestic and foreign businesses, and will take swift and strict action against any violations."